Revolution in DeFi: Curve Finance plans direct income for CRV holders!

Revolution in DeFi: Curve Finance plans direct income for CRV holders!

Curve Finance has unveiled a new proposal that aims to distribute revenue directly to holders of its CRV tokens. This new protocol, called Yield Basis, aims to create sustainable income beyond traditional emissions and fees. Curve Finance founder Michael Egorov presented the main idea of ​​this proposal, which aims to provide CRV token holders with a more direct way to generate income. The proposal is seen as a significant step to strengthen CRV's tokenomics after previous challenges in liquidity and governance, as in crypto.news is reported.

A central element of the Yield Basis protocol is the planned minting phase, in which Curve Finance aims to generate $60 million in crvUSD. These funds are intended to fund three Bitcoin liquidity pools, namely WBTC, cbBTC and tBTC, with each pool receiving a maximum of $10 million. The proposal calls for between 35 and 65 percent of the revenue generated to be distributed to veCRV stakers in order to incentivize holders to commit their tokens for the long term. Voting on this proposal within the Decentralized Autonomous Organization (DAO) runs until September 24th.

Focus on sustainable returns

Yield Basis has a clear focus on recruiting professional traders and institutions by prioritizing Bitcoin liquidity and offering returns without the risk of short-term losses. This strategy aims to stabilize the income of token holders by benefiting from a proactive approach to managing liquidity. Unlike previous incentive programs that relied heavily on airdrops and issuances, the new strategy will route revenue directly from Bitcoin-focused liquidity pools to CRV token holders so they can earn returns more transparently and consistently.

The proposal comes at a critical time after Egorov was forced to liquidate highly leveraged CRV holdings in 2024, resulting in a loss of over $140 million. This happened, among other things, when the market fell sharply and Egorov was liquidated for almost $900,000 in CRV. Despite these setbacks, Curve remains one of the largest stablecoin liquidity centers in decentralized finance (DeFi) and is actively working to adapt its tokenomics and strengthen its position in the evolving DeFi sector.

Future prospects for Curve Finance

If Yield Basis is adopted, the CRV token could evolve from a purely governance and emissions-driven asset to a more interesting income-generating instrument. This innovative model could reduce dependence on inflation-related rewards and help Curve Finance stabilize its structure in a rapidly changing market environment. Preparations to implement this proposal have long been underway, and the next steps could be crucial for the future development of the protocol.